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Apple's "nothing new" most expensive iPhone growth can bring?

via:CnBeta     time:2018/9/13 10:51:50     readed:312

Apple unveiled four new products, including a Apple Watch and three models.IPhone. Their common features are larger screens and higher selling prices and performance enhancements.

Now it has been updated to the fourth generation of Apple Watch, which looks more healthy. In addition to monitoring user falls, low heart rate and arrhythmia alerts have been added, as well as ECG functions. Apple says the Watch Series 4 has been certified by the Food and Drug Administration (FDA) and its accuracy can be used as medical data.

However, iPhone, which accounts for nearly 2/3 of the total revenue, is still the core product and business of apple.

The three new iPhone models are iPhone XS, iPhone XS Max and iPhone XR, all designed by Liu Haiping. Based on the 10th anniversary product iPhone X, new products are mainly upgraded in performance and screen expansion.

Among them, the iPhone XS is a 5.8-inch display, and the iPhone XS Max is equipped with the largest display ever on the iPhone, measuring 6.5 inches. The new products are all A12.processorThis is Apple's first 7Nm processor. IPhone XR is equipped with 6.1 inch LCD display, aluminum frame, among the three are entry-level positioning.

In terms of selling price, iPhone has gone up to a new high. The iPhone XS offers 64G, 256G, and 512G memory versions for $999 (the state-run version costs $8,699, $10,099, and $11,899 respectively); and the iPhone XS Max also offers 64G, 256G, and 512G memory versions for $1,099 (the state-run version costs $9,999, $10,999 and $12,799, respectively), the cheapest iPhone XR. It also costs 749 dollars (the price of the state bank version is 6499 yuan).

It is worth noting that the XS Max and iPhone XR are the first to be dual-card and dual-waiting. The Chinese market is a dual SIM card, while the global market is a SIM card eSIM card.

In fact, calls for iPhone support for dual card dual standby have been going on for many years. There has always been a widespread demand for dual-card dual-wait in the Chinese market, and dual-card dual-wait has long been the standard for mainstream Android handsets, and there was more specific news that Apple would launch the feature before this conference, and now rumors have finally been confirmed.

For Apple's new iPhone, Yan Zhanmeng, director of Counterpoint Research, said the dual card is one of the biggest innovations this year, but the question is, how much do consumers care about the dual card? Will dual card function stimulate sales?

"Maybe emerging markets care more about dual cards or eSIM functions, but prices keep some users away," he said. The overall competition pressure of Apple will be relatively large this year. The price adjustment at the end of the year or the beginning of the year is the key.

With the global smartphone market basically mature, it's true that growth in iPhone sales is slowing, but Apple is also making more money by selling more expensive iPhones.

Source: Apple Cartography: times Finance

Last year's launch of the iPhone X, which pushed up the average selling price of the iPhone (ASP), also gave Apple more revenue. In the nine months to the end of June, Apple sold slightly less than 170 million iPhones, roughly the same as a year earlier, but sales of the iPhone rose 15% to $129.5 billion.

But it remains to be seen whether Apple's strategy of going ahead with high-priced products is feasible, and whether revenue will grow significantly again as a result of ASP increases. But analysts at Goldman Sachs had predicted that if the minimum price of the iPhone did not rise, it would hurt Apple's profits in fiscal year 2019.

Since Apple launched the large-screen iPhone 6 Plus in 2014, its sales have soared 52% in fiscal 2015, rising 37% to 231 million units. In the next two years, Apple has not been more relaxed than ever, and has launched three flagship models each time. According to Strategy Analytics, the complexity of developing three models has reduced operating profit from 35% in 2015 to 30%.

On the other hand, while the iPhone's sales prospects are not so clear, Wall Street is not just looking at the iPhone, but rather at the iOS ecosystem, the services that come with it, including the App Store.Cloud serviceAnd music services. Cook announced at the opening of the conference that iOS equipment has reached 2 billion worldwide.

Service business has become Apple's biggest growth driver in the past two years. Revenue from Apple's service business reached a new high of $9.548 billion in the last quarter, up 31% from $7.266 billion in the same period last year and 26% in the first three quarters. By 2020, Apple's service revenue will double to $14 billion a quarter, according to the company's goals. Obviously, the profit growth of these businesses is more promising.

What is interesting is that the big screen iPhone also contributes to the growth of service business. Smartphone users using 6 inches or larger screens typically use twice as many applications as 5.5 inches, according to the Wall Street Journal, citing data from market research firm Kantar Worldpanel. With the increase of screen size, more users choose to play games and watch on mobile phones.video.

Earlier this year, Katy Huberty, an analyst at Morgan Stanley, predicted that in the next five years, revenue from services would contribute more than half of Apple's total revenue, with $30 per device. For many mobile phone manufacturers, it's hard to imagine a $30 service income per device in addition to hardware profits, a dividend that only Apple hardware can bring.

But the capital markets seemed to be unhappy with Apple's new product, with its share price falling by 1.24% on the day of its launch.


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